Davis Manufacturing Company Had the Following Data Collections on Account Were $625,000

question 81

Essay

Davis Manufacturing Company had the following data:?? $\begin{array}{lrr}&\text { January } 1&\text { December } 31\\\text { Accounts receivable } & \$ 27,000 & \$ 33,000 \\\text { Materials inventory } & 22,500 & 6,000 \\\text { Work in process inventory } & 70,200 & 48,000 \\\text { Finished goods inventory } & 3,000 & 15,000\end{array}$ Collections on account were $625,000.Cost of goods sold was 68% of sales.Direct materials purchased amounted to $90,000.Factory overhead was 300% of the cost of direct labor.
Compute:
(a)Sales revenue
(all sales were on account)
(b)Cost of goods sold
(c)Cost of goods manufactured
(d)Direct materials used
(e)Direct labor incurred
(f)Factory overhead incurred

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Definitions:

Selling Activity

This refers to the process or actions involved in transferring ownership of goods or services from one party to another in exchange for money.

Cost Of Goods Sold

This refers to the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Average Merchandise Inventory

The mean value of a company's inventory over a certain period, calculated to assess inventory levels and cost of goods sold.

Turnover Ratio Calculation

A measurement that calculates how frequently an asset or portfolio is replaced or traded during a specific period.